• by Wayne Friedman , Staff Writer, Yesterday

Paramount Skydance has hinted at what will become of its linear TV networks' business, which will soon be growing via its acquisition of Warner Bros. Discovery.

“There are several iconic brands, both at Paramount and Warner Brothers, we can transition to streaming,” said David Ellison, chairman and CEO of Paramount Skydance, speaking with CNBC on Thursday. “So we see significant value there.” He did not provide many details.

At the same time, he revealed there is some concern -- especially when looking at where the broadcast and cable business are currently. For many analysts, this includes those entertainment, non-sports cable TV networks.

“You have to basically separate broadcast and cable. You know CBS is an incredible reach asset... an incredibly healthy business.”

Ellison then went on to say that CBS has eight of the top ten shows on TV, along with the strongest viewership for an NFL season network in years.

This comes as the NFL, a key programming content provider, will pursue higher rights fees from Paramount and all other NFL TV networks/streamer partners-- as much as 50% rise -- starting negotiations this year.

In response to this from CNBC, Ellison said: “On specifics and the ongoing negotiation, I really can't comment on that. What I can tell you is we do plan to, you know, continue our relationship and I do believe we have planned accordingly there.”

He went on to say that with the support of other healthier parts of the Paramount Skydance, the company can ease the decline of cable TV networks.

“When you put all these portfolios together, we absolutely believe we can bend the decline basically of cable.... We can rationalize the cost and actually keep those brands healthier for longer.”

Still, underneath it all, we know there will be some significant cutbacks to those networks -- staffing and otherwise.

Currently, cable networks at Paramount and Warner Bros. Discovery still sees benefit from TV distributors (cable, satellite, virtual) carriage fees.

All this might be a heavy lift -- especially when negotiating a shifting mix of networks/streaming distribution deals with legacy TV distributors (Comcast, Charter, DirecTV, Dish and others).

Can Paramount Skydance find the precise formula to keep the transition moving in the right direction?